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DeFi Education Fund Sues IRS Over Tax Rules, Alleges APA Violations
The DeFi Education Fund has taken a bold move by filing a lawsuit against the Internal Revenue Service (IRS) regarding its newly released tax rules for decentralized finance (DeFi). The group argues that these new regulations violate the Administrative Procedure Act (APA), stating they impose unlawful compliance burdens on developers and traders in the DeFi space.
The IRS’s new tax guidelines, which were revealed just over 24 hours ago, require DeFi platforms to keep a record of user transaction data and submit this information to the agency. The lawsuit contends that these rules disregard the APA’s procedural requirements for issuing regulations. In doing so, they place unnecessary burdens on developers, hindering innovation in the space.
Critics argue that the new tax compliance obligations disproportionately affect software developers by assigning them responsibilities unrelated to their core functions. These requirements are claimed to introduce operational complexities, making it difficult for DeFi projects to thrive. The lawsuit’s primary objective is to overturn these regulations and ensure the preservation of a healthy DeFi ecosystem.
The legal battle may have far-reaching implications for the crypto industry as ongoing challenges could significantly influence the US Treasury’s stance on DeFi regulation under the new administration.
Source: cryptonewsland.com
